Maternity Insurance Plans in India

Modernization and westernization is tightening its grip over India. It is good as it has brought India on the world map. To a great extent it is bringing gender equality but as everything has a flip side, it has a big role in shifting the average age of women becoming mothers from 26-27 years to 32-33 years. As women have started giving more importance to their careers, they tend to plan their family in their 30s as motherhood in their career formation years can jeopardize their growth. But this choice has its own consequences as having first child in 30s can have complications in the pregnancy. This increases the ratio of caesarean deliveries to normal deliveries very significantly in metropolitan cities. That is why many women are opting for health plans that offer maternity cover. Maternity plans in general have a long waiting period. The Waiting Period can extend to 3-6 years. Thus, at times it becomes futile to go for a Maternity insurance plan.

The following table gives details about a maternity insurance plan.

What all is covered in this plan?
The Coverage varies from Insurer to insurer but some general expenses which may be covered are as follows:

Hospitalization expenses (with a cap)

Pre-hospitalization expenses: 30days

Post-hospitalization expenses: 60days

Delivery expenses

Vaccination

Ambulance charges

Pre and post natal expenses (depends upon the type of delivery- caesarean and normal)

Premium

A Health Insurance Policy with Maternity Benefit is expensive as it is considered a high Risk product owing to almost 100% Claim ratio as opposed to other insurance policies. Premium, which is typically higher than basic policies depends upon various factors as listed below:

Type of industry

Risk factors

Age profile

Number of employees (group policies)

Company location (group policies)

When shall be the right time to seek such plan? Maternity is a life-altering journey for a woman in more way than one with rising medical Inflation and overall expenditure; child birth- related expenses have become expensive. Lack of proper planning may result in you burning a hole in your pocket which may override the happiness of being blessed with a child. According to experts, you should plan well in advance given that maternity health insurance policies typically have a long waiting period, which many prove to be tricky for most consumers. Given that most insurance companies do not offer maternity health insurance to woman who is already pregnant, deeming it as a pre- existing condition, women who wish to take maternity insurance should apply for it before they conceive. It is important to note that most maternity health insurance policies have a waiting period of 3-4 years. Maternity health insurance is, therefore, a critical aspect of a planned pregnancy.

Exclusions

Non-allopathic treatment costs

Consultation fees

Regular check-ups

Medicine costs

Congenital diseases

Termination of pregnancy (Under 12 weeks)

Pre-existing ailments or injuries diagnosed within 48 months of the policy commencement

Expenses related to self-inflicted injuries, drug use or alcohol

AIDS treatment related expenses

Dental treatment expenses

In-vitro-fertilization and infertility related expenses.

Conclusion

A steep rise in maternity expenses over the years is forcing couples to look for options to fund this expense and hence insurers highlight the maternity benefit feature in their health insurance policies. The couple purchasing these policies should fully understand the scope, Exclusions and pricing of these policies and also create a separate medical fund to meet this requirement.